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When are am supposed to work out basis of assessment before relieving losses? (under loss reIief) came across some questions on loss relief and I jumped into relieving but later find out that basis of assessment was worked out first before relieving the loss.
Hi amaka, I assume that we are referring to an unincorporated trader and therefore dealing with Income Tax. You must always firstly determine what profit or loss falls into the basis period for any tax year using the relevant basis of assessment and basis period for the tax year, ie CYB for an ongoing business, opening years bases of assessment for a new business and closing years bases of assessment for a business ceasing to trade. If the result of this is a loss then the assessment for that tax year is NIL and we then separately consider what loss relief(s) to claim, for example against the total income of that tax year and/or the preceding tax year.
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